Your part in the tragedy (VIII) – “Time is the measurement of change”

My 6^th form Physics teacher was a memorable chap who I can still picture clearly today. He was straight to the point, direct in his meaning, immeasurably patient and it was he who provided the definition above.

These words have come to stay with me in the ready-use section of my vocabulary, partly because of where I have been and certainly because of the work I do now. We are obliged as the external managers and advisors of your insurance resources, to encourage and nag you to stop and look at where your life, family and business have got to and to see if resources have kept up. And don't you love us for doing it...

I don't mean those people who are on long term claims because of some dreadful degenerative condition, they most certainly love us. They seem to have forgotten the cajoling required to have them spend an hour talking about insurance, either to us or to their accountants, solicitors and trustees. They seem to have forgotten the premiums they paid and groused about and having to fill out forms. But they do remember the direct credit from an insurance company into one or more of their accounts and they remember what they used that money for.

But even the grateful thanks that we receive from grateful people we have helped seems a hollow echo amongst the silence of those who refuse to spend the time to look at where their lives have changed and to see if their insurance resources and structures still fit. You'd swear it was a personal victory, them against us with them winning if they say "No, I don't want to spend time doing that and I'm too busy"

But that's not victory, and nor is it a victory for us if they agree to review and keep or amend the resources in place, nor even having a claim paid for that matter. The real victory which we claim as much as you ever will, is having the claim proceeds to ensure that your work gets completed. The mortgage you were working your way through month by month gets reduced or even repaid when you are diagnosed with cancer, the income paid while you are being treated which supports your family... those are victories.

Odds are you won't die quickly. It will be the slow insidious onset of a degenerative illness or medical condition that stops you finishing what you started; stops you paying off that mortgage, supporting that family, funding that retirement. The worst part would be surely, being there to endure it helplessly. Do we change the world for you? No I'm sorry we can't do that.

What we can do is to arrange for an insurance company to supply the funds at the appropriate stages in the deterioration of your health so these things that you were working on can be accelerated to a short term conclusion in the event of tragedy. I know that most of you have some insurance just like most of us have cars. Cars need regular maintenance and checking to ensure reliability and safety and we wouldn't hesitate (much) to devote the time to ensure the maintenance is carried out.

The same is true with the insurance resources that you have in place, particularly with those that have been in force for some time now. There are older insurance policies that if you'll forgive the comparison, don't have ABS, air-bags or air-conditioning; that are less reliable at crucial outcomes and are not an efficient use of your premiums. The same can true with the ownership or parking of your resources and the source of premiums.

What we recommend is that you take the time to review the changes in your life, say in the past year and into the foreseeable future. Look at your structures, your estate and your resources and review that underlying plan. If it goes bang then this is what we will do...

I'm sure that we would both be surprised by the insidious little changes, perhaps invisible for the moment, that are beginning to creep in unannounced. Are your resources still up to the task they're supposed to support? If you look regularly enough, the change will be measurable.

Allan Mearns is from Vitality Insurance Specialists Ltd, a broking practice working with individuals, their families, estates and businesses.

Vitality is a resource available to individuals and their professional advisers. It gives people information to make better decisions and to have resources that they can depend on when the disablement process threatens to interfere with the rest of their life.

Comments from our readers

On 7 July 2010 at 1:22 am Rhodes Donald said:

What a beauty Allan. You are right on the button, as you always were. What I didn't remember about you from the past was how well you wrote. Beautifully written and exactly to the point. Great to see you in print. I've been working in an accounting firm for nearly 10 years now and I've just had my first insurance claim settled for the very first two clients I ever insured. It was in the millions, and they are still alive (damaged, but still very much alive). You taught me more than I'll ever know ...

Your part in the tragedy (VIII) – “Time is the measurement of change”

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